Is Customer Satisfaction an Indicator of Customer Loyalty?

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Rahim, A.G
Ignatius, I.U
Adeoti, O.E
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Customer satisfaction and loyalty is a well known and established concept in several areas like marketing, consumer research, economic psychology, welfare-economics, and economics. And has long been a topic of high interest in both academia and practice. The aim of the study was to investigate whether customer satisfaction is an indicator of customer loyalty. The findings of the study supported the contention that strong relationship exist between customer satisfaction and loyalty. However, customer satisfaction alone cannot achieve the objective of creating a loyal customer base. Some researchers also argued, that customer satisfaction and loyalty are not directly correlated, particularly in competitive business environments because there is a big difference between satisfaction, which is a passive customer condition, and loyalty, which is an active or proactive relationship with the organization.
Staff Publications
Customer satisfaction , Customer loyalty , Switching cost , Loyalty Programme
Rahim, A.G, Ignatius, I.U and Adeoti, O.E (2012) Is Customer Satisfaction an Indicator of Customer Loyalty?. Australian Journal of Business and Management Research Vol.2 (7) 14-20pp.